PFC gains on getting ‘Infrastructure Finance Company’ status from RBI
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Power Finance Corporation – Tips |
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Power Finance Corporation – Price Details |
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Power Finance Corporation – Technical Analysis |
Power Finance Corporation is currently trading at Rs. 318.60, up by 3.15 points or 1% from its previous closing of Rs. 315.45 on the BSE.
The scrip opened at Rs. 316.50 and has touched a high and low of Rs. 321 and Rs. 316.50 respectively. So far 10,391 shares were traded on the counter.
The BSE group ‘A’ stock of face value Rs. 10 has touched a 52 week high of Rs. 337.70 on 19-Jul-2010 and a 52 week low of Rs. 200 on 14-Aug-2009.
Last one week high and low of the scrip stood at Rs. 323.50 and Rs. 314 respectively. The current market cap of the company is Rs. 36,556.37 crore.
The promoters holding in the company stood at 89.78% while Institutions and Non-Institutions held 6.82% and 3.40% respectively. Government owned Power Finance Corporation (PFC) has received ‘Infrastructure Finance Company (IFC)??? status from the Reserve Bank of India (RBI) pursuant to the company???s request for the same to the apex bank earlier this year. In February 2010, RBI had introduced new category of Non-Banking Finance Companies (NBFCs) as IFC.
Following this categorization, the company will now be able to take an additional lending exposure of up to 5% of its owned funds in case of a single borrower as well as group of borrowers in the private sector. Banks are one of the major providers of funds to PFC. Exposure of banks can now be 20% of its capital funds (instead of 15% earlier) including the additional 5% exposure allowed for lending to infrastructure sector.
Moreover, as IFC, risk weight of banks’ finance to PFC will be 20% vis-a-vis extant risk weight of 100% earlier. Lower risk weight is expected to help the company in securing competitive interest rates from banks. Besides this, it can also apply for issuance of infrastructure bonds.
PFC had posted an increase of 17.55% in its net profit at Rs 652.35 crore for the quarter ended June 30, 2010 as compared to Rs 554.91 crore for the quarter ended June 30, 2009.
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